The liability for a dividend is recorded on which of the following dates?

Question

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The liability for a dividend is recorded on the date of declaration. This is the date when the company's board of directors authorizes the payment of the dividend and sets the amount and record date. The other options (A, B, and C) are not relevant for recording the liability for a dividend. The date of record determines which shareholders are eligible to receive the dividend, the date of payment is when the dividend is actually paid out, and the date of announcement is when the company publicly announces its intention to pay a dividend.

The Liability for a Dividend Is Recorded on Which of the Following